EDUCATION EVENTS MUSIC PRINTING PUBLISHING PUBLICATIONS RADIO TELEVISION WELFARE

   
f o r    m a n a g i n g    t o m o r r o w
SEARCH
 
 
APRIL 23, 2006
 Cover Story
 Editorial
 Features
 Trends
 Bookend
 Economy
 BT Special
 Back of the Book
 Columns
 Careers
 People

Insurance: The Challenge
India is poised to experience major changes in its insurance markets as insurers operate in an increasingly liberalised environment. It means new products, better packaging and improved customer service. Also, public sector companies are expected to maintain their dominant positions in the foreseeable future. A look at the changing scenario.


Trading With
Uncle Sam

The United States is India's largest trading partner. India accounts for just one per cent of us trade. It is believed that India and the United States will double bilateral trade in three years by reducing trade and investment barriers and expand cooperation in agriculture. An analysis of the trading pattern and what lies ahead.
Business Today,  April 9, 2006
 
 
BECKONING CAREERS
Return of the Natives

Global tech biggies are increasingly turning to Indian talent while selecting country heads for their Indian operations.

Shift in focus: Rajiv Nair gave up consulting to head Autodesk in India
Help, Tarun!
Brush Up On Your SOX

Technology companies worldwide realised sometime ago that India is both a high end R&D destination and one of the world's fastest-growing markets. Now, after the lag of a few years, they are re-ordering India's position in their global hierarchies and tweaking their human resource manuals to square with this new reality. Result: a lot more thought is going into the recruitment of their country heads for India.

An understanding of local market conditions and the ability to manage large delivery centres-key criterion till not so long ago-are considered givens. The new requirement: country managers must have the ear of the global management team; direct contact with the global Chief Executive is a bonus. Multinational tech companies are riding the reverse brain drain to place mid- or senior-level Indian managers in their ranks as heads of their fast-growing operations in this country.

Rajiv Nair, recently appointed Managing Director of the Indian operations of desktop software giant Autodesk, was also Microsoft's first employee in India and is credited with building its Indian operations from scratch; he was also instrumental in convincing Bill Gates to commit a $1.7-billion (Rs 7,650 crore) investment in India. For years, Autodesk's India operations were seen as an extension of its Singapore office, but that has been changing over the last 12 months, culminating in the appointment of Nair in March this year. "We are witnessing a period of very rapid growth in the region," says Jack Q. Gao, Vice President, APAC Emerging Geo. "Rajiv's appointment reflects Autodesk's (a design and engineering software tools vendor) increased focus on the region. He brings with him immense experience which Autodesk can leverage in India to achieve our business goals."

Changing attitude: Rangu Salgame of Cisco India (above) & Ajay Marathe, President, AMD India

Apple's recent announcement that it will soon open an R&D centre in India (some say as soon as mid-April) is a victory of sorts for Mohan Kharbanda, head of the pc-maker's global services business, who lobbied for it. Kharbanda was earlier handpicked by Dell founder Michael Dell to manage its fast-growing services and contact centre business in India. Apple will obviously leverage his experience of managing a large team, remotely delivering projects and providing customer support in India. Kharbanda won't actually manage the operations on a day-to-day basis, but will hold overall responsibility of Apple's global services projects. While Apple has been late to establish an R&D centre in India, it is expected that Kharbands's experience in setting up and rapidly scaling up projects will help it make up for lost time.

Biswadeep "Bobby" Mitra, Managing Director of Texas Instruments (TI) India, is another such manager. In 1986, Mitra joined TI's fledgling operations in Bangalore as a fresh graduate from IIT, Kharagpur, rose up the ranks to become Director, Americas Product Development and Customer Programs, and later the Worldwide Program Manager for Low Power Digital Signal Processor Development, before flying back home to head the operations he started his career with. In the five years that he's been in charge of the India ops, two global CEOs, Tom Engibous and Rich Templeton, have visited India twice each (the latter's second visit came after he became Chairman).

According to senior TI India executives, Mitra played a key role in getting his global bosses to commit multi-million dollar investments in Bangalore and open several new R&D development programmes in India's silicon city. TI India, for instance, played a key role in the development of the single-chip cell phone and the digital light processing technology that offers an alternative to high-end LCD and plasma screen displays. "India is an important part of our global set-up and Bobby's presence is a key reason for our success here," TI chairman, and until recently Chief Executive, Tom Engibous, had told BT on his last visit to India. The self-effacing Mitra, who is reportedly hiring aggressively in Bangalore, is reticent about his role. "I think the success of the India centre speaks for itself and my job is to only support this growth," he says.

HOMING IN
WHO?
Most large tech companies now prefer to appoint Indians or Indian-Americans with experience at headquarters or heading a significant business unit of a large global company as their India country heads.

WHAT'S THE JOB CONTENT LIKE?
R&D centres are recruiting by the hundreds if not the thousands each year; so man and project management skills are key. In sales, India heads have to be able to look beyond the obvious markets to small towns and small businesses and cater to their specific needs.

WHAT'S THE PAY LIKE?
Since Indian R&D centres are no longer considered tech sweat shops, only highly rated personnel are chosen as country heads. Their salaries are at par with what similarly ranked pros get in the US-$300,000-$350,000 per year. Sales heads earn about Rs 1.2 crore to Rs 1.5 crore annually.

DOES IT HELP THEIR CAREERS?
Yes. India is a key growth market and R&D centre for most companies. A good showing here opens up doors to the upper echelons of the corporate hierarchy. That's because India is no longer seen as short-term hardship posting. Experience here is often seen as an acid test of an individual's team building, leadership and management skills.

It's not long-time company execs alone who are winning the trust of their CEOs and landing plum assignments in India; some relative greenhorns are doing the same. Rangu Salgame, who was president of Edgix, an internet infrastructure company, took over the reins of Cisco India in 2005. He convinced his bosses in the us to shift their intense focus on China and take a hard look at the company's Bangalore-based sales and R&D establishment. Cisco India had, for years, remained just another Cisco outpost. But Salgame's arrival a couple of years ago changed the scene dramatically. "Rangu managed to completely overhaul the attitude of top management, including (CEO John) Chambers, and convinced it of the potential here," says long-time Cisco India hand B. Ashok, Senior Vice President, it Services. Cisco has been one of the biggest beneficiaries of China's scorching 9 per cent-plus growth rate over the last few years, but over the last few months, senior managers seem to be convinced that India can begin to challenge its dominance. So much so that Salgame's hardsell of his motherland convinced Chambers to green signal his plan to double staff (to 1,000) and approve a $1-billion (Rs 4,500 crore) investment in India in October 2005 spread across its R&D, venture capital and customer support operations.

Flying back home: Biswadeep Mitra, MD, Texas Instruments India

Headhunters and analysts say there is a definite change in thinking of large MNCs. Says Venkat Shastry, Partner at leading executive search firm Stanton Chase and head of its Tech Practice: "India country managers today must have the ability to influence the company's global strategy and, at the same time, have minute knowledge of the Indian market. This is a direct function of the India's newfound strategic importance in the global scheme of most MNCs. India country heads are no longer self-deprecating bag carriers." Clearly, being sent to India is no longer seen as a punishment posting. "MNC tech companies now want their India country heads to have some experience of working at their global head office or a stint with a global corporation. These companies are now ramping up their operations here rapidly and they want people who can work on a macro scale and manage a diverse operation," says Kris Laxmikanth, CEO, The Headhunters, another leading search firm.

In October last year, chip maker AMD announced India's first big-ticket chip fabrication facility. What is little known is that it was its India President Ajay Marathe who convinced the company's top management team to locate this $3 billion (Rs 13,500-crore) project in India. "We will remember this day as a historic milestone in India's economic and manufacturing progress. AMD is committed to succeeding in the global high-growth markets," AMD CEO Hector Ruiz said after signing the deal with SemIndia.

India is beeping loudly on the radars of most global CEOs. The time is just ripe for ambitious Indian managers to showcase their skills to the people who matter. Who knows? If the current trend continues, a tour of duty through India might be considered de rigueur for a shot at the corner room.


COUNSELLING
Help, Tarun!

I am an academician in a management institute with 15 years of experience. I am 36 years old, have specialised in finance and know a few computer languages. I want to shift to the corporate sector. Please advise whether a PhD or any other qualification would help me make the switch?

I would advise you to look for a corporate job with your current qualifications as doing a PhD would be time consuming. And since you have specialised in finance, apply for jobs in that area. Alternatively, you could also opt for a CFA programme.

I'm 30-year-old and working as a Sales Manager in an insurance company. I have four years of experience in the sector. I am a commerce graduate with a Diploma in Risk and Insurance Management. However, I am not interested in insurance and want to set up my own business. I am in a dilemma, please advise.

If you feel strongly about doing business, you should crystallise your ideas and prepare a concrete plan. After that you can think about funding and investment. Once you have a business plan, it will be easier for you to implement your ideas. You could also do business in the insurace sector i.e. take an agency. That way, you can put your experience in the insurance sector to good use.


Answers to your career concerns are contributed by Tarun Sheth (Senior Consultant) and Shilpa Sheth (Managing Partner, US practice) of HR firm, Shilputsi Consultants. Write to Help,Tarun! c/o Business Today, Videocon Tower, Fifth Floor, E-1, Jhandewalan Extn., New Delhi-110055..


Brush Up On Your SOX
CAs are raking in greenbacks certifying compliance with the Sarbanes Oxley Act.

There's a demand for a new breed of professionals-those who know how to certify compliance with the Sarbanes Oxley Act (sox), 2002, of the us, which makes it mandatory for corporations to have internal controls in place to ensure the integrity of their accounting procedures.

Who can certify sox compliance: Says Satyavati Berera, Executive Director, PricewaterhouseCoopers: "There are no prescribed qualifications for this. But chartered accountants with thorough knowledge of sox and experience in setting up and reviewing internal controls are ideally suited for these assignments."

Who needs these services: All companies listed in the us need to comply with the provisions of sox. The Indian operations of us companies and Indian companies which have outsourcing contracts from the us also need to follow these norms.

How much does it pay: In keeping with the practice in the us, sox professionals typically bill their clients by the hour. Normal fees range from $30-$150 (Rs 1,350-6,750) per hour. Mid-level consultants charge about $85 (Rs 3,825) per hour, but rates for senior consultants at top firms can shoot up to $190 (Rs 8,550).

What's the demand like: No one can put a figure on the number of sox-compliant professionals in the country, or on the likely demand, but it's fair to say that the demand runs into thousands. And this is likely to grow as the Indian and us economies form more linkages.

 

    HOME | EDITORIAL | COVER STORY | FEATURES | TRENDS | BOOKEND | ECONOMY
BT SPECIAL | BOOKS | COLUMN | JOBS TODAY | PEOPLE


 
   

Partners: BT-Mercer-TNS—The Best Companies To Work For In India

INDIA TODAY | INDIA TODAY PLUS
ARCHIVESCARE TODAY | MUSIC TODAY | ART TODAY | SYNDICATIONS TODAY